Kitron builds new factory in Eastern Europe

The board of Kitron ASA has resolved a plan to rent a new factory in Kaunas, Lithuania.

The factory, which is planned to have a floor space of 12,000 square meters, is expected to be completed in mid 2009. At full capacity the new factory may generate revenue of more than NOK 500 million. The underlying investment in land, building and production equipment will be in the size of NOK 160 million. The company is negotiating with property developers and finance institutions.
"This new factory represents a significant contribution to covering our capacity increase needs in order to meet our customers' demands and our own goal to increase our market share in the markets in which we operate" says CEO Jørgen Bredesen. "Our present factory in Kaunas is running well and is recognized for quality as well as implementing skills. Its profitability is good. When the new factory opens we will further increase our competitiveness."